Property Management

What is vacancy and collection loss in a Kansas investment property analysis?

AThe cost of maintaining vacant units
BAn allowance for the income lost due to unoccupied units and uncollected rents✓ Correct
CThe cost of tenant turnover repairs
DThe percentage of tenants who break their leases

Explanation

Vacancy and collection loss is deducted from potential gross income to arrive at effective gross income. It accounts for periods when units are empty and rents that are not collected.

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